The National Industry Standards for Financial Capability
Draft: May 2015
Definition of Financial Capability
Financial capability is generally described as a set of tangible outcomes (such as increased emergency and long-term
savings and improved credit scores) that encompass multiple and interrelated aspects of behavior related to how
individuals manage their resources and make financial decisions – including the factors they consider and the skill sets
they use. It looks at finances holistically and emphasizes behavior change (what a person does) in addition to
knowledge gain (what a person knows).
Purpose of the Standards
To ensure consistency of financial capability efforts nationwide, and adopt industry best practices. Financial capability
efforts can include stand-alone programs that help participants improve their financial health and/or components of
other programs that help participants reach specific financial goals, such as homeownership, foreclosure prevention,
home maintenance or home rental.
In order to best serve clients, organizations providing financial capability programs and individual financial capability
practitioners (educators, coaches and/or counselors) agree to adopt the following:
Core Operating Standards
1. Competency: Possess a strong knowledge in the area of personal finance – specifically behaviors related to
visioning/goal setting, maximizing income, spending, saving, borrowing and protecting, financial products and
services, credit, investing and insurance1.
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Recommended Benchmark: Individuals new to the field of financial capability should obtain appropriate
orientation and introductory level training during the initial six months of employment. All providers
should have a basic knowledge of human financial behavior - common tendencies and biases – and how
to facilitate behavior change.
2. Skills: Demonstrate knowledge and skills for delivering financial education and/or financial coaching/counseling.
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For financial education, demonstrate an understanding of adult education techniques and training,
cultural competency, facilitation skills and training methods, presentation skills, audio/visual techniques,
planning and designing trainings, participatory training techniques and behavioral economics and
change.
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For financial coaching/counseling, exhibit coaching skills (inquiry, active/reflective listening, facilitation
and accountability) and professional communication and organizational skill set, including customer
service, cultural competency, behavior change and time management skills. Financial capability
1 As it relates to competency, the goal is for the practitioner to be able to impart knowledge about subject matter, rather provide
advice. This is particularly true for the subjects of financial products, insurance and investing.
coaches/counselors must demonstrate the skills to conduct a financial analysis, including obtaining,
reviewing and analyzing credit reports, calculate income and debt and develop a spending plan. A full
command of financial calculations is required.
3. Training: As soon as possible, but within 18 months of being hired, financial capability practitioners will obtain
minimum training as a financial capability practitioner equivalent to no less than 30 hours of facilitated
instruction covering topics included in Standards 1 and 2 above, utilizing a variety of methods which could
include lecture, interactive, demonstration, on-line and case study.
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Recommended Benchmark: Individuals new to the field demonstrate proficiency in financial capability
content and delivery methods.
4. Certification: A certification standard is critical to establishing professionalism and value to financial capability.
After completing minimum training, certification will require a financial capability practitioner to take and pass a
comprehensive exam demonstrating at least 80% proficiency. The exam will test the skills and understanding of
core competency areas identified in Standards 1 and 2 above, as well as the related content and activities
identified in Exhibits A and B herein.
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Recommended Benchmark: Certification must be completed as soon as possible, but no later than 18
months from the start of employment.
5. Continuing Education: Complete a minimum of 10 hours of continuing education annually in subjects relative to
the core content and delivery of financial capability programs.
6. Financial Capability Program Operations: Implement effective program operations, including outreach and
marketing, partnership building, fundraising, customer service, customer tracking, reporting, program
evaluation, outcomes measurement, program design and technology. Practitioners should have a working
knowledge of these subject areas.
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Recommended Benchmark: These skills can be obtained through training and experience.
7. National Industry Standards Code of Ethics and Conduct Statement: Sign and adopt the written National
Industry Standards Code of Ethics and Conduct that specifically addresses any real and apparent conflicts of
interest, guidelines for professional behavior, privacy and confidentiality, payment for services, consultation,
referrals, quality assurance and integrity.
Performance Standards
1. Delivery: Perform group financial education and individual, personalized financial counseling or coaching to
clients using a variety of interactive techniques.
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Recommended Benchmark: Content, delivery and format of the training and counseling/coaching is
tailored to meet the needs of the participants.
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Recommended Benchmark: Participants should be provided service in a timely manner, requisite of the
service need. At minimum, upon request participants should receive acknowledgement of inquiry
within two business days of initial contact, and delivery of service within a two-week framework.
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Recommended Benchmark: Financial capability practitioners should use a training manual, and make
materials available to education attendees, and use a formal intake, needs assessment and written
action plan with counseling/coaching clients.
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Recommended Benchmark: A certificate of completion is provided to customers who successfully
complete the training.
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Recommended Benchmark: A financial capability program should include education to transfer
knowledge and personalized support to implement financial behaviors to reach financial goals. Client
follow up and accountability are essential, whether it be through email, phone or text after training,
coaching/counseling to check on action steps.
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Recommended Benchmark: Active, open client files for counseling/coaching clients should be closely
monitored, with timely follow-up in accordance with the stated action plan. When no contact from the
client has taken place for six consecutive months, the file may be classified as inactive.
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Recommended Benchmark: Where appropriate, financial capability practitioners should review and
analyze client’s credit report, spending plan and financial goals.
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Recommended Benchmark: Customer satisfaction surveys are used to evaluate the effectiveness of the
financial education and counseling/coaching.
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Recommended Benchmark: Offer and encourage individual counseling or coaching in conjunction with
the provision of all group education.
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Recommended Benchmark: A code of ethics is utilized for all volunteer trainers, coupled with an
orientation regarding the mission, philosophy and delivery of the training.
2. Curriculum: Utilize a comprehensive curriculum containing the following minimum core content:*
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Visioning/Goal Setting
Maximizing Income
Spending
Saving
Borrowing
Protecting
* See detailed list of acceptable content and topics
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Recommended Benchmark: There are a number of excellent consumer curricula that have been
developed by various organizations, service providers, etc., which may meet or exceed the standard for
curriculum content. These curricula must contain the components mentioned above.
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Recommended Benchmark: Specialty topics, such as investing, asset building, individual development
accounts (IDAs), financial planning and retirement may also at times be delivered as group education.
Use of nationally developed and utilized curriculum, and/or an equivalent is recommended. Financial
capability practitioners should secure appropriate training in the appropriate specialty topic.
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3. Expected Program Outcomes: Upon completion of financial capability programs, clients will be able to
demonstrate progress towards the following outcomes:
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Gaining and exercising financial knowledge
Having financial self-efficacy (confidence)
Assessing and managing appropriate financial products and services
Setting financial goals and aligning financial behaviors and resources to reach goals
Maximizing sources of income to cover monthly expenses and save for the future
Tracking spending and making intentional spending decisions
Planning ahead and saving for the future
Selecting and using credit appropriately
Having adequate asset and financial risk protection
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Recommended Benchmark: Optimally, financial capability efforts include a combination of financial
education for knowledge transfer and ongoing financial coaching/counseling to support behavior change
and help participants reach their goals. In most circumstances (e.g., based on pre-assessment of
learners’ needs), hours and length of the service period for the combination of education and
coaching/counseling may vary, and 12 hours over a time period of at least six months is recommended.

Recommended Benchmark: Comprehensive effective delivery should be determined based on the
individual need of the client to reach the desired outcomes. The minimum standard for delivery of
individual counseling or coaching should have an initial session of at least 60-90 minutes and ongoing
sessions of an appropriate duration based on individual goals.
4. Recordkeeping: Collect and maintain specific information from financial capability clients in accordance with all
laws and governing organizations (e.g., intermediary).
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Recommended Benchmark: An intake form should be completed and collected with client profile
information to include contact information, services sought/provided, household size, ethnicity
(optional), household income, date and type of service provided, service format and length.
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Recommended Benchmark: Aggregate information for financial capability activities should be
maintained including total number of persons served and other demographic information.
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Recommended Benchmark: Utilize a checklist to ensure files maintained are consistent and meet
reporting standards and quality assurance.
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Recommended Benchmark: Files should be maintained in secured file cabinets in order to protect client
privacy. Scanned documents or electronic files should maintain the highest level of security.
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Recommended Benchmark: Files should be maintained for a minimum of three years. Longer file
retention requirements may be required if the household has received grant or loan assistance through
state of federal subsidy programs. At the time of disposal, files should be shredded and e-files
destroyed so they cannot be recreated.
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Recommended Benchmark: Privacy policy, disclosure statement and authorization for data sharing
should be completed and signed by the client and maintained in the client file.
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Recommended Benchmark: Measure impacts of financial capability programs appropriately and
effectively.
5. Reporting: Utilize an electronic Client Management System (CMS) for collecting and reporting data.
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Recommended Benchmark: An electronic method in place for collecting reporting data may be as basic
as an Excel spreadsheet or Access database application that captures needed data fields from each
client, but preferably should be a software application designed for financial capability programs.
6. Service Thresholds: Establish referral networks for individuals and families seeking services that the financial
capability practitioner does not provide or possess sufficient competency to adequately deliver.
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Recommended Benchmark: Examples of such services may include individual/personal counseling
services, benefits screening, legal aid, financial products, etc
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Exhibit A
Standard Financial Education Content
BEHAVIOR
CONSUMER
OUTCOME2
TRADITIONAL
CONTENT
KEY POINTS
2
VISIONING/ Goal setting
MAXIMIZING
SPENDING
INCOME
 Gaining and exercising financial knowledge
 Having financial self-efficacy (confidence)
 Selecting and managing appropriate financial products and services
Setting financial goals
Maximizing sources of Tracking spending and
and aligning financial
income to cover
making intentional
behaviors and
monthly expenses and spending decisions
resources to reach
save for the future
goals
 Goal setting
 Money
 Money
management
management
 Financial products
and services
(transaction
accounts)
 Credit (existing
debt)
 Values and views
 Earnings
 On-time payments
 Future orientation  Public and private
 Debt reduction
benefits
 Priorities
 Planning/budgeting
 Taxes
 Motivation
 Transaction
 Living within
accounts
 Awareness of
means
choices and
 Living within
decision-making
 Work-life balance
means
(trade-offs)
 Support services
 Needs and wants
(transportation,
 Strengths and
 Impacts of
obstacles
childcare)
decisions
SAVING
PROTECTING
Planning ahead and
saving for the future
Selecting and using
credit appropriately
Having adequate asset
and financial risk
protection
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Center for Financial Services Innovation (CFSI), EARN and NeighborWorks America.
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BORROWING
Saving
Goal setting
Money
management
Financial products
and services
(deposit accounts)
Investing
Emergency fund
Financial goals
Savings accounts
Habit of saving
Planning ahead
Protection
Comparison
shopping
Balance of risk and
return
Credit (new)
Financial products
and services
(credit)
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Credit products
Spending
Reasons to borrow
Implications of
borrowing
Reading the fine
print
Comparison
shopping
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Insurance
Credit (managing)
Financial products
and services
(managing)
Saving (emergency
fund)
Insurance
Emergency savings
Fraud and scams
Identity theft
Rebuilding credit
Minimizing
exposure/risk and
maximizing
wellbeing
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Self-Sufficiency
Standard
Job training
referrals
Investments
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Tracking
Comparison
shopping
Advertising
Greening
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Assets and
investments
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7
Balance of risk and
return
Living within
means
Qualifying for
credit
Credit scores
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Reading the fine
print
Managing assets
and investments
Exhibit B
Minimum Standard Activities for Financial Counseling/Coaching
In collaboration with the client
Activities
 Perform intake – gather baseline information and all required forms and disclosures
from client
 Conduct accurate needs and financial assessment
 Document the household income and expenses
 Determine and document household savings and debt
 Review client’s credit report(s)
 Discuss client’s financial goal(s)
 Develop a household budget
 Develop a written action plan
 Establish client accountability
 Provide client follow up and document outcomes
 Make referrals for additional resources that might be beneficial to the client
 Maintain files and close them according to the National Industry Standards,
government contract requirements and/or organizational policies
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